Shared Features Across State DPA Programs
- Grant, Loan, or Forgivable Models
Most DPAs come in one of three forms: grants (non-repayable), deferred second‑mortgage loans (often interest‑free and forgiven after a set period or sale), or forgivable loans if certain conditions—like occupancy—are met. - Primary Residence Requirement
A near-universal requirement is that assistance be used only for a primary residence. Using DPA for second homes or investment properties is generally prohibited. - First‑Time Buyer & Income Limits
Many programs are targeted at first-time homebuyers (with typical definitions excluding ownership in the last 3 years) and require income at or below a given percentage of Area Median Income (AMI). - Homebuyer Education
Completing an education or counseling course is often mandatory to qualify for DPA. - Forgiveness Terms
Second‑mortgages commonly offer deferred payment and may be forgiven over time, upon sale, or refinance of the home.
State-Specific Niches & Noteworthy Programs
- Arkansas
- Dream Down Payment Initiative: Up to 10% of home price (max $10,000), forgivable over 5 years.
- ADFA DPA: Up to $15,000 as a second mortgage over 10 years. Includes a Mortgage Credit Certificate (tax credit) option.
- California (CalHFA, GSFA/NHF)
- MyHome Assistance: Deferred second loan (3%–3.5%) for first-time buyers, deferred until sale/refinance.
- GSFA Platinum Programs: Includes “Select” and “Assist‑to‑Own” variations—for peace officers, educators, county employees—offering gift or zero-interest deferred loans up to ~5.5%.
- Colorado
- CHFA: Grants up to 3% (max $25,000); forgivable second loans up to 4% with payback only if selling or refinancing.
- CHAC: A second mortgage with monthly payments and minimum contribution requirement (1% of price or $750 for disability program participants).
- Connecticut
- Time to Own: Forgivable loans up to $25,000; legislature considering expanding to $50,000 to counter rising down payments (avg ~$63,200 recently).
- CHFA DPA: Second mortgage offering $3,000 to up to ~3–3.5% of purchase price, with homebuyer education required.
- Michigan
- MI 10K Program: Up to $10,000 available to first-time (and repeat buyers in some areas).
- First‑Generation Pilot Program: Launched recently, offers $25,000 deferred loans to first‑generation buyers—those whose parents/guardians never owned a home.
- Massachusetts
- MassHousing Option 1: Interest‑free deferred second mortgage—repayment required when sold, refinanced, or paid off.
- Minnesota? Not directly cited—additional research would be needed.
- Missouri
- Up to 4% cash assistance, plus a Mortgage Credit Certificate option to reduce tax liability.
- Nevada
- Home Is Possible: Up to 5% loanable for down payment or closing costs—available to non-first-time buyers.
- Federal Home Loan Bank of San Francisco: Offers up to $50,000 to first-time buyers (Middle-Income DPA).
- New Hampshire
- Home Flex Plus / Preferred Plus: Up to $15,000 in 0% APR second mortgages—repayable upon sale/refinance or after 30 years.
- New Jersey
- NJHMFA DPA: Up to $15,000 interest-free, forgivable second loan.
- First‑Generation Add‑On: Additional $7,000 for those whose parents never owned a home—total $22,000 possible.
- Police & Firefighter Program: Specialized mortgage for law enforcement and firefighters via pension fund investments Wikipedia.
- New York (SONYMA)
- Up to 3% (max $15,000) 0% loan, forgiven after 10 years if no refinance or sale occurs.
- NYC HomeFirst: Up to $100,000 for buyers under 80% AMI, with a 3% minimum contribution required.
- North Carolina
- NC Home Advantage: Up to 5% DPA for first-time and move‑up buyers.
- HomeChoice Disability DPA: Up to $15,000 for buyers with disabilities; paired with special first mortgages.
- Ohio
- Statewide Your Choice! DPA: 2.5–5%, forgivable after 7 years.
- Canton Program: Up to 50% down payment and 100% closing costs, forgiven after 5 years.
- Oklahoma
- OHFA Homebuyer DPA: Up to 3.5% of mortgage via participating lenders, available to first-time and repeat buyers—with 30-year fixed mortgages.
- Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Vermont, Virginia, Washington
- Each state’s program offers varying combinations of forgivable loans, grants, or second mortgages—with levels varying by location and occupation (e.g., SC’s 15-year forgiven second mortgage; TN’s Great Choice Plus; TX’s My Choice and local city-level programs like El Paso and Waco offering up to $25,000).
- West Virginia
- Up to $8,000 in 15-year second mortgage at 2% interest.
Are Any DPAs Available for Second‑Home or Investment Properties?
No widely available programs allow use of DPA for second homes or investment properties. Most require the home be a primary residence, with restrictions enforced via repayable or forgivable terms tied to occupancy.
eed guidance on what programs are available? Visit our Programs Portal! 🚀
